Factors influencing foreign direct investment by multinational corporations in South Africa

2021 ◽  
Vol 18 (1) ◽  
pp. 362-384
Author(s):  
J.G.M. van der Berg ◽  
N.E. Mazibuko ◽  
C. Rootman
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Factors Influencing

ENTREPRENEURIAL ACTIVITY AS AN EXTERNALITY OF INWARD FOREIGN DIRECT INVESTMENT IN EMERGING ECONOMIES: PANEL DATA FROM ARGENTINA, BRAZIL, COLOMBIA AND SOUTH AFRICA

2014 ◽  
Vol 19 (01) ◽  
pp. 1450004 ◽  
Author(s):  
MICHELLE L. WASHINGTON ◽  
ZANETA CHAPMAN
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Multinational Corporations ◽  
Emerging Economies ◽  
Direct Investment ◽  
Spillover Effect ◽  
Entrepreneurial Activity ◽  
Inward Foreign Direct Investment

Many emerging economies seek multiple and diversified means of economic development, including openness to inward foreign direct investment. However, some scholars and protectionists claim this hosting of economic activity on the part of multinational corporations (MNCs) might in fact be detrimental to economic development. This paper seeks to address these concerns by using panel data from Argentina, Brazil, Colombia and South Africa to investigate a mediational relationship among inward foreign direct investment, skilled labor supply and entrepreneurial activity in the emerging economy context. Our results provide empirical evidence of later stage entrepreneurial activity as a spillover effect of inward foreign direct investment and that this indirect effect is fully mediated by the pool of factory workers.

FINANCIAL INTEGRATION AND ENVIRONMENT IN AFRICA: THE ROLE OF OUTPUT GROWTH AND FOREIGN DIRECT INVESTMENT

2021 ◽  
pp. 2150002
Author(s):  
EKUNDAYO PETER MESAGAN ◽  
KAYODE ABIODUN AKINYEMI ◽  
ISMAILA AKANNI YUSUF
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial Integration ◽  
Ordinary Least Squares ◽  
Output Growth ◽  
Particulate Emissions ◽  
African Countries ◽  
Output Increase ◽  
Specific Emissions

As economies integrate financially and both investment and output increase, the environment may be affected depending on the nature of international financial resources attracted into the country. Hence, this study examines the effect of financial integration, output growth, and foreign direct investment (FDI) on the environment in selected African countries involving Nigeria, South Africa, Egypt, Algeria, and Angola between 1980 and 2017. The study uses carbon emissions and particulate emissions (PM) to proxy pollution and analyze the data through the fully modified ordinary least squares (FMOLS) technique. Empirical results show that financial integration worsens pollution in Egypt, Nigeria, Algeria, and in Africa; output growth deteriorates pollution in South Africa, Algeria, Angola, and in Africa; while FDI fuels environmental degradation in Egypt and South Africa. We recommend that African countries should strive to establish specific targets for lowering emissions even though the Kyoto Protocol did not set specific emissions reduction targets for them.

Regime Type and Foreign Direct Investment: A Transaction Cost Economics Approach to the Debate

2017 ◽  
Author(s):  
Austin P. Johnson ◽  
Quan Li
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Multinational Firms ◽  
Joint Venture ◽  
Transaction Cost Economics ◽  
International Political Economy ◽  
Regime Type ◽  
Ownership Type ◽  
Multiple Dimensions

A debate exists in international political economy on the relationship between regime type and foreign direct investment (FDI). The central point of contention focuses on whether multinational firms generally prefer to pursue business ventures in more democratic or autocratic countries. A considerable amount of theory has been developed on this topic; however, the arguments in previous studies lack consistency, and researchers have produced mixed empirical findings. A fundamental weakness in this literature is that while FDI has largely been treated conceptually as a homogeneous aggregate, in reality, it features divergent characteristics on multiple dimensions. Three possible dimensions that FDI can be decomposed on are: greenfield vs. brownfield, ownership type (wholly owned vs. joint venture), and horizontal vs. vertical. The most relevant dimensions to the problem at hand are: greenfield vs. brownfield, and horizontal vs. vertical. Five propositions, based on the notion of asset specificity, other investment attributes, and host nation domestic factors, are derived to predict how regime type might affect four types of FDI: vertical-greenfield; vertical-brownfield; horizontal-greenfield; and horizontal-brownfield. Depending on the type of FDI, multinational corporations may have no regime preference, an autocratic preference, or a democratic preference. This research contributes to empirical international relations theory by providing a useful example on how to resolve a scholarly debate, theoretically, and by laying out testable propositions for future empirical research.

scholarly journals Byways and Highways of Direct Investment: China and the Offshore World

2010 ◽  
Vol 39 (4) ◽  
pp. 111-142 ◽  
Author(s):  
William Vlcek
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Comparative Studies ◽  
Direct Investment ◽  
Pacific Islands ◽  
Developing Economies ◽  
Net Worth ◽  
Domestic Capital ◽  
Financial Governance ◽  
Financial Liberalisation

This paper examines a lacuna in the literature on foreign direct investment (FDI) flows to China: the absence of analysis for the prominent location of small Caribbean and Pacific islands as leading sources of FDI. An indeterminate amount of domestic capital is embedded in these FDI flows, which distorts comparative studies on FDI in developing economies between China and other states. Direct investment from China has also increased in recent years and offshore financial centres (OFCs) often serve as the initial destinations. This paper excavates the rationales behind the presence of OFCs and suggests that Chinese actors will emulate the practices of developed state multinational corporations and high-net-worth individuals. The implications of these investment practices are outlined along with possible trajectories for their impact on the process of financial liberalisation in China. Consequently, it encourages increased Chinese participation in the development of global financial governance.

Foreign direct investment and the law in Nigeria: a legal assessment

2016 ◽  
Vol 58 (1) ◽  
pp. 126-146
Author(s):  
Eghosa Osa Ekhator ◽  
Linimose Anyiwe
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Company Law ◽  
Content Type ◽  
Legal Development ◽  
Regulatory Frameworks ◽  
Sectorial Analysis ◽  
History Of ◽  
Legal Barriers

Purpose – This paper aims to explore the laws that govern Foreign Direct Investment (FDI) in Nigeria. The history of company law and the rise of multinational corporations clearly illustrate the attempts by the Nigerian Government to encourage the inflow of FDI. The different stages of Nigeria’s legal development will be examined in this paper and subsequently an assessment of the laws regulating FDI in the different investment sectors will be in focus. Design/methodology/approach – This paper uses a doctrinal approach by undertaking a sectorial analysis of different sectors or segments of the Nigerian economy highlighting their various regulatory frameworks. The agricultural, steel, banking, employment and oil sectors is focussed in this paper. Findings – This paper demonstrates that for FDI to have positive impacts on the different sectors of the Nigerian economy, the various laws regulating the different sectors should be amended to reflect current realities. Originality/value – This paper provides a fresh illumination or analysis to the legal barriers inhibiting FDI in Nigeria. It does this by highlighting the various laws affecting FDI in different sectors of the Nigerian economy.

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